China's Sinopec SABIC Tianjin Petrochemical cuts Jan LLDPE output

January 11/2012

(ICIS) -- China’s Sinopec SABIC Tianjin Petrochemical
expects to produce only around 26,000 tonnes of linear low density polyethylene
(LLDPE) in January, about 13% lower than usual, because of current low product
prices, a source close to the company said on Monday.

Its plant, located
in northern China, typically produces 30,000 tonnes of the polymer each month,
the source said.

The facility has a designed capacity of 300,000
tonnes/year, he said.

“The reason why Sinopec SABIC Tianjin Petrochemical cut down LLDPE film
output may be because the prices were below cost,” the source said.

Spot
LLDPE prices in northern China were assessed at yuan (CNY) 9,400-9,600 (USD
1,490-1,521/tonne) on Monday, according to Chemease.

The production cut is expected to spur buying of LLDPE in the region,
traders said.